Construction Contractor Funding in Arlington, TX

The rule, and its limits

Texas Property Code section 28.004 provides that overdue amounts accrue interest from the day after the due date at 1-1/2 percent per month. That is useful leverage in a collection conversation. It is not a cash-flow tool, because interest accrues on money you are still waiting for, and a contractor must still pay a crew and suppliers in the meantime. This is a general description, not legal advice.

Arlington as a contractor's base

Arlington is a city in Tarrant County and part of the Mid-Cities region of the Dallas-Fort Worth metropolitan area. It had 394,266 residents in 2020, making it the second-largest city in Tarrant County after Fort Worth and the largest city in Texas that is not a county seat. Contractors based here can work across the metroplex, so their jobs and their customers may be in different cities with different draw habits. That means a contractor may be waiting on several payers at once.

Where the gap opens

1. Mobilization: permits, equipment and first materials are paid before the first draw.
2. Between draws: weekly payroll continues while the next draw waits for inspection or sign-off.
3. Closeout: retainage is held back and released late, often after punch-list items.

Any one of these stages can run past the date a contractor planned for. A job with three delays can leave an account thin even when the project itself is on track.

An example with invented numbers

A contractor finishes a phase and bills $85,000. Materials cost $34,000 and crews cost $22,000 for the phase. If the owner pays on day 35 instead of day 15, the contractor carries $56,000 for an extra three weeks. On a 1-1/2 percent monthly rate, the legal interest on $85,000 for an extra three weeks is a number the contractor may not collect in full, and it does not fund Friday's payroll. These figures are illustrative only and are not our terms.

What to ask for and how we can help

Funding runs from $25,000 to $5,000,000 and can arrive in as little as 24 hours after approval. The application takes about five minutes with a soft credit pull, and sole proprietors can apply, including one-truck subcontractors. Ask for the shortfall between draws, not the full contract value. For a payroll bridge see working capital, and for trucks and tools see equipment financing. Residential remodeling is an area where we do not promise funding.